Correlation Between Marqeta and Secureworks Corp

Can any of the company-specific risk be diversified away by investing in both Marqeta and Secureworks Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Marqeta and Secureworks Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Marqeta and Secureworks Corp, you can compare the effects of market volatilities on Marqeta and Secureworks Corp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Marqeta with a short position of Secureworks Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marqeta and Secureworks Corp.

Diversification Opportunities for Marqeta and Secureworks Corp

-0.37

Correlation Coefficient

Marqeta  Secureworks Corp

Very good diversification

The 3 months correlation between Marqeta and Secureworks is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Marqeta and Secureworks Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secureworks Corp and Marqeta is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Marqeta are associated (or correlated) with Secureworks Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secureworks Corp has no effect on the direction of Marqeta i.e., Marqeta and Secureworks Corp go up and down completely randomly.

Pair Corralation between Marqeta and Secureworks Corp

Allowing for the 90-day total investment horizon Marqeta is expected to under-perform the Secureworks Corp. In addition to that, Marqeta is 9.19 times more volatile than Secureworks Corp. It trades about -0.15 of its total potential returns per unit of risk. Secureworks Corp is currently generating about 0.2 per unit of volatility. If you would invest  837.00  in Secureworks Corp on September 24, 2024 and sell it today you would earn a total of  9.00  from holding Secureworks Corp or generate 1.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Marqeta  vs.  Secureworks Corp

Marqeta

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marqeta has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Secureworks Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Secureworks Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Secureworks Corp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Marqeta and Secureworks Corp

The main advantage of trading using opposite Marqeta and Secureworks Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marqeta position performs unexpectedly, Secureworks Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Secureworks Corp will offset losses from the drop in Secureworks Corp's long position.

The idea behind Marqeta and Secureworks Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.